That is correct.
I do recommended just using light elf so you do not have to go through the LSP->LMS->setnet>xmlreplace->xlights workflow. It is just LSP->light elf-> play the sequence in xLights.
For LOR sequences you do not need to do anything extra. An LOR sequence can be played directly in xlights. The only concern is that the mapping of channels is not quite right if you are using DMX controller settings in LOR, that will be addressed as soon as Matt releases the new version.
Frank